NEW YORK (KMJ/AP) — Energy supplier PG&E had its stock future sharply critiqued after S&P slashed its rating.
The agency cut the key rate five notches from a “BBB-” to “B”, reducing it to so called junk status.
The move on Tuesday comes amid concerns that recent wildfires, such as the devastating Camp Fire, will result in the utility being found liable.
A group of firms known as the Northern California Fire Lawyers submitted a wrongful death lawsuit against PG&E in November, alleging that it was responsible for the deaths of Barbara Carlson and Shirley Haley, who both perished in Paradise on November 8th as the Camp Fire was sweeping through the town. The same group also filed on behalf of around 20 other victims, seeking damages for the loss of their homes and personal property.
Attorneys representing families said the fire wouldn’t have happened were it not for PG&E’s practice of running its equipment to failure. A cause has yet to be officially established and PG&E announced that it will fully comply with any investigations.
Hear the report from KMJ’s Dominic McAndrew as it aired:
